Avery Dennison's Performance Is Solid, But Shares Are Too Pricey For My Liking

2026-02-26 16:39:55 ET

Several months ago, in June 2025, I decided to revisit my neutral assessment of Avery Dennison ( AVY ). At that time, I thought that perhaps the business might be worthy of an upgrade. This followed a plunge in the share price of 15.3% at a time when the S&P 500 was up 18.9%. At the end of the day, however, I decided against upgrading it. Revenue and profitability had slipped compared to what the company saw in 2024. And, I claimed, the business looked mostly fairly valued as opposed to undervalued. So instead of upgrading it, I reaffirmed it as a "Hold" candidate. For context, whenever I rate a company a "Hold," I am making the claim that the stock should perform more or less similarly to the broader market for the foreseeable future. Since that day, we have seen that transpire. Shares are up 12.4%, only narrowly outperforming the 11.5% increase that the market enjoyed....

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